LEADERS CIRCLE GRAND RIVER CHAPTER Licensing of Property Managers - - PowerPoint PPT Presentation

LEADERS’ CIRCLE

GRAND RIVER CHAPTER

Licensing of Property Managers

Michelle Kelly, B.Comm., LL.B., ACCI Sutherland Kelly LLP

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Protecting Cond om inium Ow ners Act, 20 15 (Bill 10 6)

• Two main parts:

1) Amendments to Condom inium Act, 1998 and other statutes 2) Creation of the Condom inium Managem ent Services Act, 2015

• Received Royal Assent on December 3, 2015.
• Not yet proclaimed into force.
• Regulations – drafts released for comment.

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Cond om inium Ma na gem ent Serv ices Act, 20 15

• Who? Individuals and companies providing condo management services.
• What? Licence will be mandatory.
• When? As early as July 1, 2017.
• Where? Ontario.
• Why? High profile cases of managers stealing millions of dollars from condos.

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Ind iv id ua ls Types of Licences 1. Limited Licence

• 2. General Licence
• 3. Transitional General Licence

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Ind iv id ua ls – Lim ited Licence

• Entry level managers
• Application, fee, and police check
• Deemed limited licence – less than 2 years’ experience.
• Conditions
• Must have a supervising licensee
• Cannot enter into agreements, spend more than $500, or give anything to
• wners without approval of the supervisor.
• Cannot sign status certificates.
• Cannot use reserve fund.

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Ind iv id ua ls – Genera l Licence

• Senior managers
• Application and fee
• Police check
• Deemed general licence – successfully completed RCM exams or courses by

ACMO.

• Conditions
• Cannot work for more than one provider, unless all providers consent.

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Ind iv id ua ls – Tra nsitiona l Genera l Licence

• Intermediate managers
• Application and fee
• Police check
• Deemed transitional general licence – more than 2 years’ experience and

already working as manager.

• Limit – 3 years to get general licence
• Conditions
• Cannot work for more than one provider, unless all providers consent.

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Ind iv id ua ls Exemptions from Licence Requirement 1. Certain professionals

• 2. Director of condo if self-managed, unless receive compensation or reward

for providing management services.

• 3. Manager employed by licensed provider or condo to collect fees.
• 4. Contractors providing only construction or repair/ maintenance services.

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Ma na gem ent Com p a nies

• Company will need a licence too.
• Deemed licence if already providing condo management services.
• Requirements:
• Application & fee
• Designated a principal condo manager.

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W ha t d oes regula tion m ea n for the ind ustry ?

• Supervision & oversight.
• Investigative pow ers.
• Disciplinary process.
• Com plaints process.
• Higher m anagem ent fees.

The “New” Condominium Act

Mark Willis-O’Connor McCarter Grespan Beynon Weir PC

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AGENDA

1. Condominium Authority of Ontario 2. Condominium Tribunal 3. Condominium Registrar 4. Agreements 5. Owners’Meetings 6. Records

7. Status Certificates 8. Performance Audit 9. Reserve Fund Studies

• 10. More Notice Requirements
• 11. Insurance Deductible

Condominium Authority of Ontario (“CAO”)

• The proposed condominium authority under the Condominium Act
• CAO still must be designated as the condominium authority by

the government and enter into an administrative agreement

• Expected to happen by late 2017

• Not-for-profit corporation governed by a board of directors that

reports to the Ontario Ministry of Government and Consumer Services

• Funded through fees charged to condominium corporations and

users of its services

• Responsible for carrying out the “delegated provisions” to be set
• ut in regulations

• CAO expected to provide:
• Information, tools, and resources about condominium buying, ownership,

and living (e.g. condominium guides)

• Education for condominium directors
• Self-help tools for condominium community members to resolve issues

and disputes on their own

• A registry of all Ontario condominium corporations and board members
• Oversight of the Condominium Authority Tribunal

Condominium Authority Tribunal

• CAO will appoint a chair, vice-chair, and members of the Tribunal
• Exclusive jurisdiction to resolve certain condominium disputes that

will be specified in regulations

• Will not deal with certain disputes (e.g. easements, occupier’s

liability, liens, amalgamations, termination of condominium corporation, title to real property)

• Appeals may be made to the Divisional Court on questions of law

• Disputes

may

• nly

involve condominium corporations,

• wners,
• ccupiers, mortgagees, purchasers, and

any party added by the Tribunal

• Corporation may apply to resolve a dispute with an owner, occupier, or

mortgagee

• Owner
• r

mortgagee may apply to resolve a dispute with the corporation or an owner, occupier, or mortgagee

• Purchaser may apply to resolve a dispute with the corporation

regarding records (pursuant to ss. 55(3) of Condominium Act)

• Tribunal has jurisdiction to order:
• Compliance
• Prohibit or require a particular action
• Damages up to $25,000 or an amount prescribed by regulations
• Costs
• Penalties for failing to produce records under ss. 55(3) of the Condominium Act
• Whatever other relief the Tribunal considers fair in the circumstances, except it

cannot order a person to vacate a property permanently

Condominium Registrar

• Appointed by CAO (if authorized) or the Minister
• Every corporation responsible for filing with the Registrar:
• An initial return
• A turn-over return
• An annual return
• Other returns as prescribed in the regulations
• The required form and information for returns to be set out in

regulations

• Every corporation shall also file a notice of change for every

change in the directors elected or appointed to the board

• Registrar

will maintain a public database containing the information in every return and notice it receives

Agreements

• Condominium management services agreements must be with a

provider or manager licensed under the Condom inium Managem ent Services Act, 2015

• Shared facilities agreements required where applicable in

accordance with regulations and to be registered on title

• Positive covenants to also run with land

Owners’ Meetings

• Prescribed meeting notices and materials:
• Preliminary Notice of Meeting of Owners
• Notice of Meeting of Owners
• Requisition for Meeting of Owners
• Instrument Appointing a Proxy
• Quorum reduced from 25% to 15% for third or subsequent attempts

to hold meeting where quorum not achieved in first two attempts

• By-laws may permit voting by telephonic or electronic means

Records

• Regulations specify records to be kept and periods of retention
• Regulations set out requirements and timeframes for making and

responding to requests for records

• Tribunal shall deal with records disputes; regulations to set out

monetary penalty for non-compliance

Status Certificates

• Status Certificates must now contain:
• The financial implications of outstanding judgments and legal

actions to which the corporation is a party

• A statement of proposed substantial modifications and their

purpose

Performance Audit

• The scope of a performance audit shall include (unless the

regulations provide otherwise), in addition to the common elements, any real property owner by the corporation

• Must be conducted before the first anniversary of registration of the

declaration and description (or such other time that the regulations prescribe) – no longer required to be conducted within the six and ten month time period following registration

Reserve Fund Studies

• Regulations will set out:
• Definitions of “major repair” and “reserve fund study provider”
• Additional reserve fund purposes
• What are “adequate” amounts of money in the reserve fund and

reserve fund contributions

• When and how the corporation must obtain an outside opinion if

the reserve fund falls below the prescribed amount

More Notice Requirements

• Annual budget must be prepared in accordance with regulations

and a notice to owners must be delivered

• Prescribed addition to a unit’s common expenses requires a notice

to owner within 15 days – owner may apply for dispute resolution

• Modifications to the common elements – amendments to when

modifications may be made without notice – e.g. clause 97(5)(c)

Insurance Deductible

• Owner responsible where damage to unit, common elements, or

corporation’s assets was caused by act or omission of the owner (or his/ her/ its lessee, permitted occupant, or other prescribed person), except where damage was caused by corporation (or its directors,

• fficers, agents, or employees)
• Declaration may alter the circumstances under which the

deductible may be charged back to an owner’s unit

• Where the above exceptions don’t apply, the deductible shall be a

common expense

Michael Clifton Clifton Kok LLP Legal Counsel

The Regs –A Work in Progress*

*that could be changing as we speak

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38 49 69

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Communications. Qualifications. Meetings. Records. Miscellany.

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Communications.

Information Updates

• Periodic Information Certificates
• Information Certificate Updates
• New Owner Information Certificates

…at least once every three m onths or at such other tim e periods as are prescribed…in accordance w ith the regulations

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Communications.

Information Updates

• Periodic Information Certificates
• Information Certificate Updates
• New Owner Information Certificates

…[by t]he additional tim e periods, if any, that are set out in a by-law of the corporation

Condominium Act, 1998, s. 26.3(a)

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Communications.

Information Updates

• Periodic Information Certificates
• Information Certificate Updates
• New Owner Information Certificates

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Communications.

Information Updates

• Periodic Information Certificates
• Information Certificate Updates
• New Owner Information Certificates

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Communications.

Information Updates

• Periodic Information Certificates
• Information Certificate Updates
• New Owner Information Certificates

As soon as reasonably possible upon becom ing an ow ner in a corporation and, in any event, no later than 30 days after … the ow ner shall give notice to the corporation in w riting, setting out the ow ner’s nam e and, in accordance w ith the regulations, identifying the ow ner’s unit.

Condominium Act, 1998, s. 46.1(2)

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Communications.

Record of Owners

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Qualifications.

Disclosure Education

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Qualifications.

Disclosure

• Current legal action involving the corporation
• Convictions of offences under the Condom inium Act,1998
• Interest in any contract to which the corporation is a party
• 60 days or more common expense contribution arrears
• Anything else by-laws may require

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Qualifications.

Education

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Meetings.

• Preliminary Notice of Meeting
• Information that owners wish to include in Notice of Meeting
• Voting Units
• Lower voting thresholds for certain by-laws
• Recorded vote not to identify names or units
• Quorum flexibility extended

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Records.

• Specific records to be kept
• Record retention periods
• Core and Non-Core Records